EverEdge Global October Newsletter

There is a growing realization regarding just how important intangible assets are.  Intangible assets now account for more than 87% of all company value – and in technology orientated companies and start-ups, the proportion is even higher. Virtually all earnings growth is tied up in intangible assets, which means that Boards and senior management teams need to understand how to manage risk around these assets.  

A recent research report from US data security company Code42, found that 78 percent of CEOs agree that ideas, in the form of intangible assets (intellectual property or “IP”), are the most precious assets in an enterprise.  However, it also found that 72 percent of CEOs admitted to taking valuable intangible assets from a former employer. This demonstrates a significant disconnect between what executives say and do.

Over the past several years, our team has undertaken more than 750+ client engagements to help business’ identify, value, manage and monetize their intangible assets. Yet across all these engagements, there was only one company that noted intangible asset risk on its risk register!

For many companies, leakage or theft of critical confidential information is one of the biggest intangible asset risks they face. This is closely followed by not being able to prove ownership of key assets; not owning brand, or brand infringement; hazardous use of open code software; or threatened or actual IP litigation.

However, all too often, these – and other – risks related to a company’s intangible assets are overlooked. Too often companies track chairs, company cars and equipment (fixed assets) without any focus on vastly more valuable intangible assets. All companies have a fixed asset register, yet virtually none have an intangible asset register.

Today, intangible assets are the most important assets a company controls, regardless of what the balance sheet or P&L might say. They are not just the largest repository of value, but they are also the primary drivers of future company performance, which means they are also what fundamentally drives today’s (and tomorrow’s) share price. 

To effectively leverage intangible assets, it is critical to understand the value (and risks) that these assets present. To find out more, click here. 

This December, the world’s first conference focusing specifically on intangible assets will be held in Sydney. EverEdge Global team members Paul Adams, Michael Masterson and Tyler Capson will be sharing the stage with leading luminaries Dixon Soh, Rob Campbell, Jonathan Haskell and Ian Fletcher, among others.  

With a programme spanning two-days, leading conference provider IQPC has brought together some of the world’s foremost experts to share their insights into how businesses can recognise and value their intangible assets, and adapt to the new knowledge based economy.
 
To view the full programme and to book your seat at the event, click here. 
 

Renowned speaker and TED Brains Trust luminary Sunny Bates, will be speaking at an AMCHAM event on October 15, sharing insights into: 

• What are the key issues keeping political and business leaders awake at night;
• Whether the current political environment is creating a more combative style of global leadership than we’ve seen in recent years, and
• How to leverage networks to exchange ideas and create growth opportunities.

Don’t miss your chance to hear one of the world’s most engaging and insightful speakers.  To get your tickets, click here.